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Shares of Ashok Leyland climbed a little over eight per cent on Monday, cent after it reported strong sales data for the month of December.
Part of the Hinduja Group, it reported a 48 per cent increase in sales to 9,290 units, from 6,275 in December 2013. The share price closed at Rs 57.85, up Rs 4.45 or 8.3 per cent. Shares of Maruti Suzuki and Tata Motors also ended higher, about two per cent. The BSE Auto index closed a little over one per cent higher, compared to a 0.2 per cent decline in the market.
Attractive discounts and fear of a rollback in excise duty cuts had led to the spurt in December sales for automobile companies, said experts.
“The declining trend in most key commodities for the past two quarters would positively impact the margins for auto companies in the next two quarters.
The rupee’s depreciation against the dollar would benefit exporters, including Bajaj Auto, TVS Motor and Ashok Leyland. Maruti stands to gain from a weaker yen and Tata Motors from a stronger dollar against the pound,” said HDFC Securities.
